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You have a potential investment that will cost $3000. You forecast potential returns of either a gain of 20% (p=50%) or a loss of 10%(p=50%).
You have a potential investment that will cost $3000. You forecast potential returns of either a gain of 20% (p=50%) or a loss of 10%(p=50%). If you pursue this investment, your Value at Risk is If you decided to borrow $2500 and invested a total of $5500 then your Value at Risk is $3000;$5500$600;$1100$3000,$2500$300;$550
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